GMR Airports

GMR Airports reported a robust Q1 FY25 with total income reaching INR 25.2 billion, marking a 19% year-on-year increase. This growth was primarily fueled by a 7% year-on-year rise in total passenger traffic, which hit 31.8 million. EBITDA for the quarter stood at INR 10.2 billion, an 18% year-on-year increase, with the EBITDA margin improving to 52% from 48% in Q4 FY24. Delhi Airport saw a 7.5% income growth to INR 12.9 billion, while Hyderabad Airport's income surged 21.4% to INR 5.8 billion.

The merger of GMR Airports with GMR Airports Infrastructure Limited is now complete, streamlining the corporate structure and bringing airport assets closer to GIL shareholders. Management emphasized that this move enhances corporate governance and enables more efficient movement of earnings, particularly for balance sheet management and growth. While Groupe ADP's equity holding in the listed entity is now around 33%, the operational structure and board representation remain consistent with prior arrangements, ensuring continuity.

Physical work for the expansion of both Delhi and Hyderabad Airports is 100% complete. Delhi's new Terminal 1 is set to restart operations on August 16th, with full capacity utilization expected by Q3/Q4 FY25. At Hyderabad, the expanded terminal, which is three times larger, is incurring costs, but all new non-aeronautical shops are opening, with a significant revenue jump anticipated in Q4 FY25. Bhogapuram Airport's physical progress stands at 34% as of July, with an estimated INR 12-13 billion capex planned for FY25.

Consolidated net debt, excluding FCCBs, increased by approximately INR 750 crores ($9 billion) from Q4 FY24 to INR 280 billion. This was primarily due to borrowings for Bhogapuram Airport and balance capital expenditures at Delhi, partially offset by foreign currency note repayments at Hyderabad. Management indicated that INR 700 crores of the total INR 3,250 crores debt for Bhogapuram has been drawn, with an additional INR 2,500 crores expected over the next two years. The company projects that net debt will peak in the next 12-18 months before starting to decline.

Delhi Airport has submitted its tariff proposal for the fourth control period (April 1, 2024, to March 31, 2029), with an order expected by December 2024, which will be retrospectively effective from April 1, 2024. Internationally, GMR Airports is focusing on asset-light opportunities in the Middle East, having submitted bids for the Kuwait Airport Terminal 2 O&M contract and a request for qualification for Abha Airport in Saudi Arabia. The company aims to generate free cash for equity in Delhi Airport within the next 3-4 years.

GMR Airports continues its commitment to ESG principles, with Delhi and Hyderabad Airports targeting net zero by 2030 and rated Level 4+ transition by ACI. All GMR Airports are ranked among the top 100 globally by Skytrax, with Delhi at 36th, Hyderabad at 61st, and Goa at 92nd. The company spent INR 25 million on CSR in Q1, benefiting over 140,000 individuals, predominantly from vulnerable groups.